When homeowners renovate, they often look at upgrades that will improve the value of their homes. However, your everyday costs, such as insurance rates, also impact your life and where your home ownership funds go.

Around 85% of homeowners have insurance with an average payment of $1,083 per year. How high or low your insurance premium goes depends on a number of different factors. You can't control the area where your house is located, for example, but you can control the features you add or take away that impact your bill.

Home Security System

Some areas have higher crime rates and insurance companies charge more for insuring a home in that area. Even if you don't live in a high crime location, installing a security system may help you get a break on your insurance rates. The rates vary between a 2% to 5% discount but depend upon the sophistication of the system. Talk to your insurance provider about what type of system they recommend and the possible price breaks for adding an alarm system. Another aspect you need to talk to them about, however, is what happens if you forget to able your alarm and a burglary occurs. Some plans fight paying a claim if you fail to arm your system.

Age and Condition of Roof

Did you know that insurance companies base their rates on factors such as how old your roof is and whether it is likely to need replaced soon? Keeping your roof in updated and excellent condition could potentially lower your insurance rates as it's less likely damage will occur during a storm creating the need for a claim. Before replacing an older roof, talk to your insurance agent about the type of roof recommended for your geographic location. You could potentially receive a discount based on the materials used, such as a metal roof in hurricane-prone areas to withstand the fierce winds.

Swimming Pools and Water Features

If your home has a swimming pool, hot tub or pond on the property, you'll need additional liability coverage and may want to add an umbrella policy in case someone is injured in the pool. If you're considering adding a water feature, talk to your agent about how it might impact your homeowner's insurance and added costs. If your family will use the pool, then the extra cost may be worth the investment.

Keep in mind that a pool doesn't add any real value to your home and it will cost you money to maintain it and insure it. As long as you understand the costs and risks upfront, if you still want a pool, go for it. If your home has a pool and you're tired of the maintenance costs and added insurance liability, talk to a contractor about removing the pool and backfilling the resulting hole.

Family Pets

Owning a pet brings a lot of joy to most families and they become part of the family. However, there are some exotic pets and dog breeds which raise your insurance premiums because of the risk perception. Your dog may be the sweetest creature on the face of the planet, but if other dogs of that breed have bitten and resulted in insurance claims in the past, then your premiums may be higher. Some companies even refuse to write a policy if you own some of the bully or working breeds, such as a pit bull, rottweiler or wolf-hybrid. If you are in still deciding on a family pet, consult your insurance company to make sure the breed you're looking at is covered.

Storm-Safe Windows

If you live in an area prone to high winds, your insurance company may discount your policy if you install wind resistant windows. Wind-related discounts vary from company to company and area to area but sometimes reach a 10% to 15% credit for homeowners. However, the cost of storm-resistant windows is more, so unless you plan to replace windows anyway, the savings on rates may not pay for the higher cost of the windows.

High-End Features

Take stock of the features in your home, such as wood floors, granite countertops and high-end appliances. If you don't have granite countertops, your cost of replacing them should they become damaged is much lower and thus your insurance rates should be lower. Make sure you understand the difference between the price you paid for features in your home and replacement cost — typically more as prices rise. While you want adequate insurance, you don't need to be over-insured.

Save Money on Homeowner's Insurance

Some other methods of saving money on your homeowner's insurance include increasing your deductible and bundling your insurance with your auto insurance. Shop around and get quotes from different providers, but read customer reviews and make sure the policy meets your needs should a catastrophe occur. With a little attention to detail and determination, you can get your overall costs down and pay only for the coverage you actually need.